The real estate market is changing and furnished rentals are on the rise. According to a study published by the specialist in furnished rental management in Paris, Book a Flat, taken over by Boursorama, the profitability of furnished rented properties increased by 7% between 2021 and 2022 in the first quarter. Furnished rentals have many advantages, whether for owners or tenants.
Indeed, furnished leases are generally signed for a period of one to nine months, or even longer in some cases. This allows tenants not to feel too attached to a dwelling and to be able to change it more easily if necessary. In addition, the rents of furnished rentals are generally a little higher than those of unfurnished rentals, which allows owners to make their property profitable more quickly.
The furnished rental is very advantageous for the tenant on two points, in particular concerning the ease of the lease signed between the owner and the tenant. The accommodation, which is furnished, allows great flexibility from the arrival of the tenant as well as savings.
This advantageous lease in terms of law has been put in place by the State in order to allow people who do not yet have a fairly comfortable situation to buy housing or to allow them to be able to rent housing for 1 year. Furnished rentals are especially advantageous for students who often have a 9-month course (the lease can be reduced to this period for the student) and who may have to move regularly.
The second advantage of furnished rentals is to allow the tenant to enter “ready-to-use” accommodation. He finds there, in fact, everything he needs for his everyday life and all he has to do is put down his suitcases. This will allow him to save money on moving, furnishing and installation costs.
The owner has greater advantages in this furnished rental system. Indeed, this type of lease allows him to take fewer risks. The lease being 1 year compared to a rental of 3 years minimum in an unfurnished accommodation. For a student, the lease being 9 months, gives him more flexibility. This allows the landlord to separate from his tenant more quickly in the event of a problem.
At the end of this lease, the owner can modify it by adding or removing conditions to reoffer it to the tenant, if the latter wishes to renew it. Otherwise, he will have to hand over the keys.
In terms of taxation, the non-professional furnished rental (LMNP) allows you to have advantages as specified on the Tax website. The owner has the choice between two statuses: the BIC, with flat-rate taxation and the real BIC. By choosing the first flat-rate micro bic solution, he benefits from a tax reduction of 50% on your property income if the turnover does not exceed €32,900. It is therefore also possible to choose the real bic status with many advantages. With this status, it is possible to deduct these charges from this property income.
The deduction concerns trustee fees, property insurance, credit interest, notary fees, work carried out in the property… and allows you to benefit from 100% depreciation of the property and its furniture. at 80%. One of the other advantages of the LMNP, if this is applied to service residences and managed by a company, you will be able to benefit from the advantages of the Censi Bouvard law.
Furnished rentals are on the rise, because they correspond to a new way of living. Tenants of furnished properties are now more demanding and are looking for accommodation that meets their needs. They want to have access to quality accommodation that meets their expectations, which is what furnished rentals offer. For landlords, furnished rentals are therefore an interesting investment.
